Selection of renewable energy projects
The rapid development of technologies in the renewable energy sector, coupled with the growing number of investors wishing to implement renewable energy projects in Kazakhstan, required the introduction of a mechanism capable of ensuring fair and competitive selection of the most efficient projects, projects with the best technological solutions and the lowest capital costs. To date, the world trend that meets these requirements is a mechanism for auction bidding aimed at selecting RES projects.
Given this global trend, at the moment, Kazakhstan has introduced a mechanism for auctions for the selection of renewable energy projects. This mechanism replaced the feed-in tariffs mechanism that operated until 2018, which at the initial stage allowed the launch of the renewable energy sector in the Republic of Kazakhstan.
In order to select RES projects, changes were made to the current legislation in the field of RE support and rules for the organization and conduction of RE auctions.
Auctions are held on the basis of the auction schedule, approved by the Ministry of Energy of the Republic of Kazakhstan.
To implement the project to build a renewable energy facility in Kazakhstan through a mechanism of guaranteed centralized purchase, a potential investor needs:
1. Examine the auction schedule and decide which project of renewable energy is acceptable for implementation
2. Contact the auction organizer (KOREM JSC), to pass online registration in the trading system
3. Sign an agreement with the auction organizer (KOREM JSC).
4. Not later than two working days prior to the auction provide financial security of the application for participation in the auction for Financial Settlement Center.
5. Take part in the auction according to the auction schedule
6. Become the auction winner.
8. After the conclusion of power purchase agreement, provide financial security for the performance of the terms of the PPA.